Circular economy financing: an Islamic finance perspective

Achieving the goal of a circular economy depends on the creation of an economy where the “end-of-life” concept is replaced by the option of getting rid of waste through the superior design of materials, products, systems, and business models. To achieve the full benefits of a circular economy, the model is reliant upon co-operation within sectors and supply chains, and across countries. But there is over-reliance upon the backing of financing and investors who recognize the risks of the linear system and can spot new opportunities. To maintain the spirit of the circular economy, providing an effective and sustainable source of finance is key for the financial needs of circular economy industrialization. This chapter will shed light on the perspective of Islamic Finance in financing the circular economy concept, especially the “green financing”.